Heavy burst! Late night on June 18, there was big news from Sino-US trade!

On the 18th, President Xi Jinping made an ordinary call with US President Trang as appointment!  In an instant, global investment has boiled, and the A50 has soared. The offshore RMB has recovered 6.90, and US stocks have skyrocketed.

Let’s see what happened?

 Xi Jinping and US President Trang Ordinary Telephone

On the 18th, President Xi Jinping should have an ordinary telephone call with US President Trang.

Trump said that I look forward to meeting with President Xi Jinping again during the G20 leaders’ Osaka Summit and in-depth communication on bilateral relations and issues of common concern.  The US attaches importance to US-China economic and trade cooperation and hopes that the working teams of both sides can communicate and find a solution to the current differences as soon as possible. I believe the whole world wants to see an agreement between the United States and China.

Xi Jinping pointed out that in recent times, Sino-US relations have encountered some difficulties, which is not in the interest of both sides. The combination of China and the United States is both good and bad. The two sides should, in accordance with the consensus reached by us, promote Sino-US relations based on coordination, cooperation and stability on the basis of mutual respect and mutual benefit. As the world’s two largest economies, China and the United States must jointly play a leading role in promoting the G20 Osaka Summit to achieve positive results and inject confidence and vitality into the global market. I am willing to hold a meeting with the President during the G20 leaders’ Osaka Summit to exchange views on fundamental issues concerning the development of Sino-US relations.

Xi Jinping emphasized that on economic and trade issues, the two sides should solve problems through equal dialogue. The key is to take care of each other’s legitimate concerns. We also hope that the US will treat Chinese companies fairly. I agree that the economic and trade teams of the two countries will maintain communication on how to resolve differences.

 A phone call makes global market skyrocketing

After the end of the 11th round of trade consultations between China and the United States, the US side imposed further tariffs on China’s exports to the United States, which cast a huge shadow on this round of consultations and also had a very negative impact on the negotiations.

However, this phone call on the evening of June 18 re-released the optimistic signal.

As soon as the news came out, the global market was rising!

Although the A-shares have not yet opened, the FTSE China A50 futures reaction is obvious, and the instantaneous heavy volume jumps. As of press time, the A50 has risen rapidly and the increase has expanded to nearly 2.5%.

The offshore renminbi is even more exaggerated, rising linearly and skyrocketing nearly 300 points. As we all know, the linkage between the A-share market and the RMB exchange rate has increased. Recently, the RMB depreciation has also fallen, and A-share risk assets have also fallen.  The surge in the renminbi tonight is a positive response to the opening of the A-share market tomorrow.

At around 21:30, the offshore RMB exchange rate against the US dollar surged from 6.93, and it broke through the 6.93, 6.92 and 6.91, 6.90 mark, up to 6.8978, and rose more than 400 basis points from the intraday low (6.9391).

Affected by the news, on the evening of the 18th, the three major stock indexes of the US stock market opened higher, and the gains further expanded at the beginning of the session. As of press time, the Dow once surged 400 points, Nasdaq rose more than 2%, and the S&P 500 gained nearly 1.5%.

Stocks in the US and China have risen sharply, and Alibaba and JD have both increased by more than 4%.

In addition, US stocks semiconductors are also skyrocketing.

Boosted by the optimism of US stocks, the intraday gains in European stock markets also expanded significantly. The European STOXX index rose more than 2%, and the German DAX30 index rose 1.75%.

In addition, after the news was issued, the price of gold once plunged high, but then stopped falling.

Crude oil futures rose sharply, rising again from about 2%, and rose by more than 4% as of 23:30.

 European Central Bank takes the lead in releasing pigeons. President Draghi hints that interest rates may be cut

The market is closely watching the Federal Reserve’s monetary policy meeting starting today.  European Central Bank President Mario Draghi hinted that the interest rate cut may be strengthened, reinforcing the expectations of the world’s major central banks to implement loose monetary policy.

The Fed will start a two-day monetary policy meeting today, announce interest rate decisions tomorrow and hold a press conference. It is expected that Fed officials will discuss whether to adopt interest rate cuts at this meeting to cope with the impact of the escalation of trade tensions and boost the US economy.

In the face of new pressure from US President Trump to cut interest rates, the Fed is expected to keep interest rates unchanged at this week’s policy meeting, but may be laying the groundwork for a rate cut later this year.

European Central Bank President Mario Draghi said on Tuesday that additional stimulus may be needed if the economic outlook does not improve. He also said that further interest rate cuts remain “part of our tools,” and asset recovery is one of the options. According to media reports, several European officials said that the first step of the stimulus measures may be to cut interest rates.

US President Trump responded to Draghi’s speech, and he posted on Twitter accusing the European Central Bank of improving the export competitiveness of the region by weakening the euro.

“We can’t do without China’s supply chain. We can’t afford a new round of tax increases.”

Recently, the first day of the 7-day series hearing held by the US government to impose tariffs on US$300 billion in Chinese exports to the United States. Dozens of industry associations and company representatives have come from all over the United States, and most of them have called on the US government not to impose a new round of tariffs on Chinese goods, saying that “we cannot do without China.” The supply chain can’t afford a new round of tax increases. The ultimate damage to the tariffs is American companies and consumers.

At the hearing, the most frequently asked by US government officials is whether companies can transfer their supply chains from China. Entrepreneurs and industry representatives have repeatedly explained patiently: China’s supply chain system is mature and complete, and it is not easy to remove the supply chain from China; it is even impossible for some industries because China is the only import of many products.

Recently, 520 companies and 141 trade associations in the United States jointly sent a letter to US President Trump, urging the US government not to impose tariffs on goods imported from China, but to return to the negotiating table to reach a solution with China.

At the “Select US” 2019 Investment Summit that ended last week, US local government economic and trade officials also expressed their desire to end trade disputes and strengthen economic and trade cooperation with China as soon as possible. Laura Johnson, who is in charge of marketing at the Idaho Department of Agriculture, told reporters that although there is a negative voice at the federal government level, the position of friendly exchanges between local governments and enterprises at the level of China has not changed.

Shareholders expect A shares to rise on Wednesday